How to apply for Pag-Ibig Multi-Purpose/Salary Loan

How to apply for Pag-Ibig Multi-Purpose/Salary Loan

MANILA, Philippines — Stressed out? Depressed, maybe? Why not take a loan with the Pag-IBIG Fund and get away from it all?

In an apparent effort to encourage members from availing of the fund’s various programs aside from housing loans, Pag-IBIG chief executive Darlene Marie B. Berberabe has taken to describing the multipurpose loan (MPL) as an “anti-depressed loan.”

Berberabe said members could use proceeds of their MPL to relieve stress from work by going on a vacation, shopping or even enrolling in a gym for workouts.

Sometimes referred to as “personal loan,” the MPL is one of two short-term loans available to Pag-IBIG members as the need arises. The other one is the calamity loan.

According to Pag-IBIG Fund guidelines, the MPL was designed “to help finance members’ immediate medical, educational or livelihood needs; minor home improvement, purchase of appliance and furniture, and ‘other related needs,’” including the refinancing of an existing loan with the fund.

Berberabe’s new term for the long-existing MPL seems to have perked up some members’ interest and spawning other names for the loan.

Pag-IBIG member Rona Herco, asking through Facebook, wondered whether she could take out a “stress loan” even while still paying for an older loan. [The answer is yes, for a housing loan, provided that the arrears are not more than nine months.]

While Pag-IBIG does not seem to have strict rules on what proceeds of the loan should be used for, not all members can avail of the program.

Based on the MPL guidelines, only those members who have made at least 24 monthly contributions can apply.

For those who have up to 59 monthly contributions, they are qualified to an MPL of as much as 60 percent of their savings with Pag-Ibig.

In technical terms, this is refered to as the TAV or total accumulated value, which is the sum of the members’ contributions, the counterpart contributions of his or her employer, and the total dividend earnings.

Those who have made 60 to 119 monthly contributions may borrow up to 70 percent of their savings while those who have 120 or more contributions can borrow up to 80 percent.

But hold your horses, the MPL – which is payable over a period of up to 24 months – will cost you 10.75 percent per year. That’s P1,075 per year for a loan of P10,000.

If the borrower fails to pay on time, he or she will also have to pay a penalty of 0.5 percent of the unpaid amount for every month of delay.

Some say the interest rate is competitive, but others may find it stressful, even depressing.

FAQ & Tips:

1. Are they still open after 5PM? Yes. Pag-ibig Branch in Pasig is still open after 5PM. I arrived there around 5:20PM yesterday (Sept 20, 2012) and they do still accept loan applicants.
2.  Where do they base the loan amount? As far as I know, the amount you can borrow is based on the total number of your contribution. 

So for instance, the borrower has a 30-months contribution, this will be multiplied by 200, then 60% of it would be the loanable amount.

Total no. of Contribution:                          30   (Months)

Borrower's Monthly Contribution:       x 200 (Employee + Employer Contribution)

                                                           --------------

                                                           = 6,000 x 0.60 = P3,600 (est. loanable amount)

- 24 to 59 months contribution = 60% of the total amount

- 60 to 119 months contribution = 70% of the total amount

- at least 120 months contribution = 80% of the total amount (this is the maximum)

Please also note that if you happen to work in different cities or provinces most probably your monthly contribution record on their system would be insufficient. This is because Pag-IBIG System is not centralized yet. If that's the case, you need to request to consolidate your contribution so that you will not be lacking in your monthly contribution.

Read more: http://business.inquirer.net/68701/pag-ibig%e2%80%99s-multi-purpose-loans-may-be-used-for-vacations-stress-relieving-activities#ixzz2thIROgRW
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The New SSS Contribution Schedule Table

The New SSS Contribution Schedule Table

The Philippine Social Security System (SSS) has released a table of its schedule of contribution that will take effect on January 2014.

Monthly Social Security System (SSS) contributions of at least 30.04 million individual members and 871,642 employers rise to 11 percent from 10.4 percent effective January 2014, the SSS said as it posted the new contribution schedule on its website. 

 

The 0.6 percent increase translates to a total contribution of P285 for an employee whose monthly compensation is from P2,250 to P2,749. Employee's share in the P285 is P90.80 while the employer chips in P194.20. Domestic helpers' minimum monthly wage in Metro Manila is P2,500.

 

According to the new contribution schedule, a slightly lower rate applies for the self-employed, voluntary members and members who are overseas Filipino workers.

 

The minimum wage rate in Metro Manila is P429 per day, which amounts to P8,580.00 for 20 working days in a month. The SSS contribution rate at this wage level is P945.00, of which P308 is the employee's share while the employer's share is P636.20.

 

For private sector employees who earn more than P15,750 per month in compensation income, the total contribution is P1,790, for the employee's share of P581.30 and employer's share of P1,208.70.

Philippine Social Security System Benefits

The Philippine Social Security System was created in 1972. Republic Act No. 1161, which is known as Social Security Law, outlines the requirements and benefits associated with the program. The administrative body that collects and manages contributions and disperses benefits is called the Social Security System, and it is based in Manila. All employees and self-employed workers who earn more than 1,800 Philippine pesos per year must pay monthly contributions to the system.

Maternity

• A woman may claim maternity benefits for a birth or miscarriage. She must notify her employer or the Social Security System if she is self-employed, of her pregnancy. When the birth occurs, she receives 100 percent of her average daily salary multiplied by the number of days for which she will receive the benefit. For a normal birth or a miscarriage, she receives 60 days' pay. For a caesarean section, she will be paid for 78 days of leave. Average daily salary is calculated over the 12-month period before the semester in which the employee claims the benefit. A semester is a period of six consecutive months that ends in March, June, September or December. For example, if the event that triggers the benefit occurs in June, then the semester is from January to June. The period over which average earnings are calculated is the preceding January to December. Add the six highest monthly salaries during this period, and divide the result by 180. This is the average daily salary. To receive benefits, the employee must have paid into the Social Security System for three of the 12 months of the calculation period.

Sickness

• An employee who falls ill may use the Social Security System's sickness benefits if he has used up all of his sick time that is allowed by his employer. To qualify for this benefit, the worker must be unable to work for more than four days. He must notify his employer within five days of the onset of his inability to work, and the employer must notify the Social Security System within five days of receiving notification from the employee. For each day of illness, the employer must pay the employee 90 percent of his average daily earnings. The Social Security System reimburses the employer for this pay. If the sick person is self-employed, he must notify the Social Security System directly, and he will receive payments directly from them. He does not need to notify the System if he is in the hospital. Sickness benefits are available for up to 120 days per year, and no more than 240 days for the same condition.

Retirement

• Philippine retirement benefits may be claimed by members of the system who are unemployed and 60 years old or older, are 65 or older regardless of employment status, or are 55 or older and have worked in underground mines for five years. If a retiree has not paid 120 monthly contributions to the Social Security System, then he will receive a lump sum payment of all of his contributions, his employer's contributions on his behalf, and the accumulated interest. If a retiree has made 120 payments or more over the course of his lifetime, then he will receive a monthly benefit payment for the rest of his life. The amount of the monthly payment depends on the amount of his contributions to the system. He may receive additional pay for up to five dependent minor children. Retirees who will be paid monthly may choose to receive a lump sum in lieu of the first 18 months of payment. If a retiree who is receiving monthly payments and is under the age of 65 begins working again, his benefits are suspended until he stops working again or reaches the age of 65.

Disability

• The Social Security System pays benefits for partial and total disabilities. A worker is eligible for monthly disability benefits if he has made 36 or more monthly contributions to the Social Security System. Workers who have a lower number of contributions will receive a lump sum disability payment. Monthly pensions are based on the number of years that the employee has worked. Lump sums are calculated by multiplying the monthly pension that the employee would have received had he made the necessary number of contributions by the number of contributions that the employee has made or 12, whichever is higher. For partial disability, this number is multiplied by the percentage of whole-body function that the disability impairs, as determined by the Social Security System. Permanent partial and permanent total disabilities are enumerated in the Philippine Social Security Law. For disabilities that fall outside of the list in Social Security Law, a medical assessment must find that the employee has at least 20 percent impairment below normal levels of function. The employee must report for medical assessment annually.

Death

• The Social Security System pays death benefits to the beneficiaries of the deceased. If the deceased made 36 or more contributions to the System, the beneficiaries receive a monthly pension that is based on the level and number of contributions, with credits for the surviving dependent children. If the deceased made fewer payments, then the beneficiaries receive a lump sum that is the monthly pension that they would have received multiplied by the number of contributions that were made or 12, whichever is higher. The primary beneficiaries are the dependent spouse and children under 21. Illegitimate children will receive 50 percent of the benefit if there are fewer than five legitimate children. If there are no legitimate children, then illegitimate children will receive 100 percent of the benefits. If the deceased had no primary beneficiaries, then the benefits will be paid to his dependent parents--the secondary beneficiaries. If he had no secondary beneficiaries, then benefits will be paid to a party specified in his will.